DXC Technology Co (DXC) 2023 Q4 法說會逐字稿

Good afternoon. My name is Emma, and I will be your conference operator today. At this time, I would like to welcome everyone to the DXC Technology Fourth Quarter Fiscal Year 2023 Earnings Conference Call. (Operator Instructions) John Sweeney, VP of Investor Relations, you may begin your conference.

下午好。我叫艾瑪，今天我將擔任你們的會議接線員。此時，歡迎大家參加 DXC Technology 2023 財年第四季度收益電話會議。 （操作員說明）投資者關係副總裁 John Sweeney，您可以開始會議了。

Thank you, and good afternoon, everybody. I'm pleased that you're joining us for the DXC Technology's Fourth Quarter Fiscal Year 2023 Earnings Call. Our speakers on the call today will be Mike Salvino, our Chairman, President and CEO; and Ken Sharp, our EVP and CFO. This call is being webcast at DXC Investor Relations website, and the webcast includes the slides that will accompany the discussion today.

謝謝，大家下午好。很高興您能加入我們參加 DXC Technology 2023 財年第四季度財報電話會議。我們今天的電話會議發言人是我們的董事長、總裁兼首席執行官 Mike Salvino；和我們的執行副總裁兼首席財務官 Ken Sharp。此電話會議正在 DXC 投資者關係網站上進行網絡廣播，網絡廣播包括今天討論的幻燈片。

Today's presentation includes certain non-GAAP financial measures, which we believe provide useful information to our investors. In accordance with SEC rules, we provide a reconciliation of these measures to their respective and most directly comparable GAAP measures. These reconciliations can be found in the tables included in today's earnings release and in the webcast slides.

今天的演示文稿包括某些非 GAAP 財務指標，我們認為這些指標可為我們的投資者提供有用的信息。根據美國證券交易委員會的規定，我們提供了這些措施與其各自最直接可比的 GAAP 措施的對賬。這些對賬可以在今天的收益發布和網絡廣播幻燈片中的表格中找到。

Certain comments we make on the call will be forward-looking. These statements are subject to known risks and uncertainties, which could cause actual results to differ materially from those expressed on the call. A discussion of the risks and uncertainties is included in our annual report on Form 10-K and other SEC filings. I'd now like to remind our listeners that DXC Technology assumes no obligations to update the information presented on the call, except as required by law.

我們在電話會議上發表的某些評論將具有前瞻性。這些陳述受已知風險和不確定性的影響，可能導致實際結果與電話會議上表達的結果大不相同。關於風險和不確定性的討論包含在我們關於 10-K 表格和其他 SEC 文件的年度報告中。我現在想提醒我們的聽眾，除非法律要求，否則 DXC Technology 不承擔更新電話中提供的信息的義務。

And with that, I'd like to introduce DXC Technology's Chairman, President and CEO, Mike Salvino. Mike?

因此，我想介紹一下 DXC Technology 的董事長、總裁兼首席執行官 Mike Salvino。麥克風？

Thanks, John, and I appreciate everyone joining the call today, and I hope you and your families are doing well. Today's agenda will begin with an overview of our solid Q4 results where we delivered another strong quarter across our financial metrics. Next, I will discuss our transformation journey and provide insights concerning how the work we did in FY '23 positions us for success in FY '24. Ken will then discuss our financial results in more detail and provide an update on our guidance. And finally, I will make some closing remarks before opening the call up for questions.

謝謝約翰，我感謝今天加入電話會議的每一個人，我希望你和你的家人一切順利。今天的議程將從我們穩健的第四季度業績概述開始，我們在財務指標方面又交付了一個強勁的季度。接下來，我將討論我們的轉型之旅，並提供有關我們在 23 財年所做的工作如何使我們在 24 財年取得成功的見解。然後，Ken 將更詳細地討論我們的財務結果，並提供有關我們指導的最新信息。最後，在開始提問之前，我將做一些結束語。

We are pleased with our performance in Q4 and in FY '23 as it shows that we can execute and positions us for more progress in FY '24. Revenues were $3.59 billion, and our organic revenue was minus 2.9%. We have driven roughly the same level of revenue in constant currency, excluding dispositions for all 4 quarters in FY '23, which positions us to continue improving our revenue performance in FY '24. Our EBIT margin increased from 7% in Q1 to 8.9% in Q4. This shows that we can continue to invest in our business early in our fiscal year and still deliver on our EBIT margin goals for the year. We see a similar EBIT margin progression in FY '24.

我們對我們在第四季度和 23 財年的表現感到滿意，因為這表明我們可以執行並為我們在 24 財年取得更多進展做好準備。收入為 35.9 億美元，我們的有機收入為負 2.9%。我們以固定匯率計算的收入水平大致相同，不包括 23 財年所有 4 個季度的處置，這使我們能夠繼續改善 24 財年的收入表現。我們的息稅前利潤率從第一季度的 7% 上升到第四季度的 8.9%。這表明我們可以在本財年的早期繼續投資於我們的業務，並且仍然可以實現我們當年的息稅前利潤率目標。我們在 24 財年看到類似的息稅前利潤率增長。

We delivered over $700 million in free cash flow and like EBIT margin, increased it throughout the year. This positions us to expand free cash flow in FY '24. Our non-GAAP EPS increased to $1.02, growing 21.4% year-on-year. This is the first time we've exceeded $1 in a quarter over the past 3 years, which shows that our capital allocation strategy is working. And finally, we delivered another strong quarter of book-to-bill at 1.04. In the quarter, 4 out of our 6 offerings delivered a book-to-bill over 1.

我們交付了超過 7 億美元的自由現金流，並且像息稅前利潤率一樣，全年都在增加。這使我們能夠在 24 財年擴大自由現金流。我們的非 GAAP 每股收益增至 1.02 美元，同比增長 21.4%。這是過去 3 年來我們第一次在一個季度超過 1 美元，這表明我們的資本配置策略正在發揮作用。最後，我們以 1.04 的價格交付了另一個強勁的季度訂單出貨比。在本季度，我們的 6 種產品中有 4 種交付了超過 1 的訂單出貨比。

Now I will turn to our transformation journey and give you more details concerning how we drove the execution of our numbers in the quarter and position DXC for success in FY '24. The first step is to inspire and take care of our colleagues. We've done a good job changing the culture of DXC, and we've also built a strong team that is executing, and I'm happy with how we've been able to add talent to our team.

現在，我將轉向我們的轉型之旅，並向您提供更多有關我們如何在本季度推動我們的數字執行以及如何定位 DXC 在 24 財年取得成功的詳細信息。第一步是激勵和照顧我們的同事。我們在改變 DXC 的文化方面做得很好，我們還建立了一支執行力強的團隊，我很高興我們能夠為我們的團隊增加人才。

To enhance our execution, we have changed our operating model to be led by our offering leaders. Our new operating model gives our organization clarity and places 7 of our most experienced leaders into the market focused on growth, differentiation, coaching our people and actively managing the details of our business. GBS is a great example. Our A&E along with our insurance offerings have been the main reason we have driven consistent growth in GBS for 8 straight quarters, and GBS continues to become a larger part of our overall revenue. Michael Corcoran and Ray August, who lead A&E and insurance, respectively, were early adopters of our new operating model, and they have achieved both market growth and differentiation. Michael and Ray are just 2 of the 7 experienced leaders now driving our business through our offering-led operating model that went live on April 1.

為了加強我們的執行力，我們改變了我們的運營模式，由我們的產品領導者領導。我們新的運營模式使我們的組織更加清晰，並將我們最有經驗的 7 位領導者投入市場，專注於增長、差異化、指導我們的員工並積極管理我們的業務細節。 GBS 就是一個很好的例子。我們的 A&E 以及我們的保險產品是我們連續 8 個季度推動 GBS 持續增長的主要原因，並且 GBS 繼續成為我們總收入的較大部分。分別領導 A&E 和保險業的 Michael Corcoran 和 Ray August 是我們新運營模式的早期採用者，他們實現了市場增長和差異化。 Michael 和 Ray 只是 7 位經驗豐富的領導者中的兩位，他們現在正在通過 4 月 1 日上線的以產品為主導的運營模式推動我們的業務發展。

The next step on our transformation journey is focused on our customers. In FY '23, our efforts to focus on our customers translated into revenue stability. As Ken will show, we have had 4 consecutive quarters of similar revenue once currency and divestitures are removed. We feel strongly that our revenue is now stable, is higher quality and is trending more towards GBS due to our customer delivery and our enhanced relationships we have developed. Our Net Promoter Score for the quarter was 29, which is near the top end of the industry benchmark range.

我們轉型之旅的下一步重點是我們的客戶。在 23 財年，我們專注於客戶的努力轉化為收入穩定。正如 Ken 將展示的那樣，一旦貨幣和資產剝離被移除，我們已經連續 4 個季度獲得類似的收入。我們強烈認為，由於我們的客戶交付和我們發展的增強關係，我們的收入現在穩定，質量更高並且更傾向於 GBS。我們本季度的淨推薦值是 29，接近行業基準範圍的上限。

We wanted to give more insight into what our customers thought of us as we have seen the external perception of DXC change, so we hired an outside firm to do a deeper survey of our customers. What we got back gives us confidence that we are positioned for future success concerning revenues because our customers view the work we do for them as essential. They want us to help them evolve to their technology future and they trust us.

隨著我們看到外部對 DXC 的看法發生變化，我們希望更深入地了解客戶對我們的看法，因此我們聘請了一家外部公司對我們的客戶進行更深入的調查。我們得到的回報讓我們相信，我們為未來的收入成功做好了準備，因為我們的客戶認為我們為他們所做的工作是必不可少的。他們希望我們幫助他們發展到他們的技術未來，他們信任我們。

This has been our platform since I arrived at DXC, focused on delivering for our customers in GIS as this will build trust in DXC and ultimately change our external perception, which will allow us to grow GBS, and that's exactly what we've done. The fact that GBS has grown now consistently over the last 2 years and continues to become a larger part of our overall revenue is an outstanding proof point that this strategy is working.

自從我到達 DXC 以來，這一直是我們的平台，專注於為我們的客戶提供 GIS，因為這將建立對 DXC 的信任並最終改變我們的外部認知，這將使我們能夠發展 GBS，而這正是我們所做的。 GBS 在過去 2 年中持續增長並繼續成為我們總收入的較大部分這一事實是這一戰略正在發揮作用的一個突出證據。

In FY '24, we expect to be even more aggressive with this strategy. Due to our new operating model that takes our most experienced leaders and focuses them on spending even more time with our customers doing relationship selling, which was the change we made in our sales approach 2 quarters ago.

在 24 財年，我們預計將更加積極地實施這一戰略。由於我們的新運營模式讓我們最有經驗的領導者專注於花更多的時間與我們的客戶進行關係銷售，這是我們兩個季度前對銷售方式所做的改變。

The third step is to optimize cost. We have built a team that knows how to drive cost optimization and expand margin, as you saw that in FY '23, driving EBIT margin to a high of 8.9% in Q4. The expansion of margin throughout the year was a function of our cost optimization initiatives that focused on staff optimization, contractors, real estate and data centers, and third-party expenses. In FY '24, we will stay focused on these items with an increased emphasis on contractors and data centers.

第三步是優化成本。我們已經建立了一個知道如何推動成本優化和擴大利潤率的團隊，正如您在 23 財年看到的那樣，將 EBIT 利潤率在第四季度推高至 8.9%。全年利潤率的擴大是我們的成本優化計劃的一個功能，這些計劃側重於員工優化、承包商、房地產和數據中心以及第三方費用。在 24 財年，我們將繼續關注這些項目，並更加重視承包商和數據中心。

Specifically in the ITO space, we are moving towards what we call infrastructure light, which means we will not use our balance sheet to do deals, we will shed a significant number of our data centers, and we will shed existing contractors in favor of full-time employees. These are the key items around our more disciplined approach to dealmaking and managing our ITO work. These items, along with us managing the decline of our pension income that does not generate cash, will produce higher quality margin for us in FY '24.

特別是在 ITO 領域，我們正在朝著所謂的基礎設施輕型方向發展，這意味著我們不會使用我們的資產負債表來進行交易，我們將剝離大量數據中心，我們將剝離現有承包商以支持全面-時間員工。這些是圍繞我們更嚴格的交易和管理 ITO 工作方法的關鍵項目。這些項目，連同我們管理不產生現金的養老金收入的下降，將在 24 財年為我們帶來更高質量的利潤率。

In the area of seize the market, our new sales approach is working as we have delivered another quarter of a book-to-bill over 1. The relationship selling that we are doing in GBS delivered a book-to-bill of 1.04. The book-to-bill of GIS was 1.03, which shows that we are taking work from our competition and our more disciplined approach to dealmaking is working. We are seeing that our external reputation has changed and that our customers see the work we do for them as essential, which speaks to our GIS business. And they want to work with us to help them evolve to their technology future, which speaks to our GBS business.

在搶占市場方面，我們的新銷售方法正在發揮作用，因為我們又交付了四分之一的訂單出貨比超過 1。我們在 GBS 中進行的關係銷售實現了 1.04 的訂單出貨比。 GIS 的訂單出貨比為 1.03，這表明我們正在從競爭中吸取教訓，而且我們更有紀律的交易方式正在發揮作用。我們看到我們的外部聲譽發生了變化，我們的客戶認為我們為他們所做的工作是必不可少的，這與我們的 GIS 業務有關。他們希望與我們合作，幫助他們發展到他們的技術未來，這與我們的 GBS 業務有關。

Another proof point that we are making the right moves in the market and changing our external reputation of being a trusted partner is the 2023 Gartner Outsourced Services Magic Quadrant where we moved into the Leaders Quadrant, increasing an ability to deliver and completeness of vision. In FY '24, we will continue to focus on our sales approach, which should be even easier with our new streamlined operating model. We believe that the market needs our services and that we are uniquely positioned to continue to deliver a book-to-bill of 1.

另一個證明我們在市場上採取正確舉措並改變我們作為值得信賴的合作夥伴的外部聲譽的證據是 2023 年 Gartner 外包服務魔力像限，我們進入了領導者象限，提高了交付能力和願景的完整性。在 24 財年，我們將繼續專注於我們的銷售方式，通過我們新的簡化運營模式，這應該會更容易。我們相信市場需要我們的服務，並且我們具有獨特的優勢，可以繼續提供 1 的訂單到賬單。

The final step is our financial foundation. Our execution in this area has placed us in a position of financial strength heading into FY '24. In FY '23, we were able to maintain our solid investment-grade credit profile, deliver over $700 million of free cash flow for the second straight year and deliver on our $1 billion commitment to repurchase our shares. In FY '24, we plan to do more of the same: maintain our investment-grade credit profile, expand our free cash flow, deliver higher-quality revenue margin and EPS and repurchase another $1 billion of our shares.

最後一步是我們的財務基礎。我們在這一領域的執行使我們在進入 24 財年時處於財務實力的地位。在 23 財年，我們能夠保持穩健的投資級信用狀況，連續第二年提供超過 7 億美元的自由現金流，並兌現我們 10 億美元的回購股票承諾。在 24 財年，我們計劃做更多相同的事情：維持我們的投資級信用狀況，擴大我們的自由現金流，提供更高質量的收入利潤率和每股收益，並回購另外 10 億美元的股票。

And with that, let me turn the call over to Ken.

就這樣，讓我把電話轉給肯。

Thank you, Mike. Let me provide you a quick rundown of our Q4 performance. Q4 organic revenue declined 2.9%; adjusted EBIT margin, 8.9%; and non-GAAP EPS, $1.02. Both are at the highest level in the last 3 years. Free cash flow of $269 million in the quarter, as you can see, the team continues to make great progress on cash generation.

謝謝你，邁克。讓我簡要介紹一下我們第四季度的表現。第四季度有機收入下降 2.9%；調整後的息稅前利潤率為 8.9%；非 GAAP 每股收益為 1.02 美元。兩者均處於近三年來的最高水平。本季度的自由現金流為 2.69 億美元，如您所見，團隊在現金生成方面繼續取得長足進步。

Moving to our key financial metrics. Fourth quarter gross margin was up 250 basis points due to lower payroll and contractor expense resulting from our cost optimization efforts, positive impact from divestitures and lower resale. SG&A as a percent of sales increased 160 basis points. Depreciation was lower by 10 basis points. Other income decreased 60 basis points primarily due to lower pension income. As a result, adjusted EBIT margin was up 40 basis points. Non-GAAP earnings per share was up $0.18 compared to the prior year due to: $0.11 from a lower tax rate, $0.08 from a lower share count, $0.04 from expanded margin, $0.03 from lower interest expense. These benefits were partially offset by $0.08 from lower revenue volumes and other factors.

轉到我們的關鍵財務指標。第四季度毛利率上升了 250 個基點，原因是我們的成本優化工作導致工資和承包商費用減少、資產剝離的積極影響和轉售減少。 SG&A 佔銷售額的百分比增加了 160 個基點。折舊率降低了 10 個基點。其他收入減少 60 個基點，主要是由於養老金收入減少。因此，調整後的息稅前利潤率上升了 40 個基點。非 GAAP 每股收益較上年增長 0.18 美元，原因是：0.11 美元來自較低的稅率，0.08 美元來自較低的股票數量，0.04 美元來自擴大的利潤率，0.03 美元來自較低的利息支出。這些收益因較低的收入量和其他因素而被 0.08 美元部分抵消。

Now turning to our segment results. Our business mix continues to improve. As a percent of total revenue, GBS is now at 48.8%, up 10 basis points sequentially. GBS grew 3.3% organically, our eighth consecutive quarter of growth. The GBS profit margin declined 80 basis points year-over-year.

現在轉向我們的細分結果。我們的業務組合不斷改善。 GBS 目前佔總收入的百分比為 48.8%，環比上升 10 個基點。 GBS 有機增長 3.3%，這是我們連續第八個季度實現增長。 GBS 利潤率同比下降 80 個基點。

Turning to GIS. Organic revenue declined 8.5%. GIS profit margin increased 190 basis points year-over-year and was up 110 basis points sequentially, benefiting from the cost optimization initiatives and lower levels of resale revenue. Resale revenue is at a lower margin, so lower resale revenue improves the quality of revenue.

轉向地理信息系統。有機收入下降 8.5%。 GIS 利潤率同比增長 190 個基點，環比增長 110 個基點，這得益於成本優化計劃和較低水平的轉售收入。轉售收入的利潤率較低，因此較低的轉售收入提高了收入質量。

Turning to our offerings. Analytics & Engineering continued with solid growth, up 8.5%. Applications declined 0.5%, a significant improvement from the last quarter's decline of 6.8%. Insurance software and BPS is up 5.9%. We continue to see good momentum in our insurance software business. Our insurance software business benefited in the quarter by approximately 300 basis points due to restructuring in existing customer contracts into a perpetual IP license with upfront revenue recognition.

轉向我們的產品。分析與工程繼續穩健增長，增長 8.5%。應用程序下降 0.5%，較上一季度 6.8% 的降幅有了顯著改善。保險軟件和 BPS 上漲 5.9%。我們繼續看到保險軟件業務的良好勢頭。我們的保險軟件業務在本季度受益約 300 個基點，原因是將現有客戶合同重組為具有預先收入確認的永久 IP 許可。

Security was down 0.4%. Cloud Infrastructure & IT Outsourcing declined 10.5%, largely driven by a decrease in resale revenue of $84 million or approximately 600 basis points. Modern Workplace was down 5.3%. As you will note, this is a significant improvement from our prior performance that we expect will continue to narrow in the upcoming year.

安全性下降了 0.4%。雲基礎設施和 IT 外包下降 10.5%，主要是由於轉售收入減少 8400 萬美元或約 600 個基點。現代工作場所下降了 5.3%。正如您將注意到的那樣，這比我們之前的表現有了顯著改善，我們預計在來年將繼續縮小。

Revenues on a sequential constant currency basis, excluding divestitures, continued with only a modest decline from Q3. This momentum that Mike and team created will be key to our success to deliver our organic revenue improvement.

按連續不變貨幣計算的收入（不包括資產剝離）與第三季度相比僅略有下降。 Mike 和團隊創造的這種勢頭將是我們成功實現有機收入增長的關鍵。

Turning to our financial foundation, we achieved our target debt level of $4.5 billion. We continue to tightly manage restructuring and TSI expense. Our restructuring and TSI expense was $232 million for the year, $68 million lower than our guide. We have been focused on improving the quality of earnings and limiting this kind of non-GAAP adjustment. Going forward, we will utilize restructuring only to accomplish our facilities' rightsizing efforts as they are nonoperational. This labor restructuring started when DXC was formed and has gone on far too long. Operating lease payments and the related expenses were down approximately $80 million for the full year, resulting from our successful efforts to reduce our facilities footprint.

談到我們的財務基礎，我們實現了 45 億美元的目標債務水平。我們繼續嚴格管理重組和 TSI 費用。我們全年的重組和 TSI 費用為 2.32 億美元，比我們的指南低 6800 萬美元。我們一直專注於提高收益質量並限制這種非 GAAP 調整。展望未來，我們將僅利用重組來完成我們設施的合理調整工作，因為它們處於非運營狀態。這種勞動力重組是在 DXC 成立時開始的，並且已經持續了太久。由於我們成功地減少了我們的設施足跡，全年經營租賃付款和相關費用減少了約 8000 萬美元。

Capital expenditures and capital lease originations as a percentage of revenue were 6.3% for the full year, down 70 basis points from FY '22. We continue to believe our capital intensity presents a long-term opportunity to improve free cash flow as we pursue an infrastructure-light model.

全年資本支出和資本租賃發起佔收入的百分比為 6.3%，比 22 財年下降 70 個基點。我們仍然相信，在我們追求輕基礎設施模式的過程中，我們的資本密集度為改善自由現金流提供了一個長期機會。

DXC has a strong and stable debt position with manageable debt maturities and a low interest rate. Almost all of our debt is fixed rate with an effective interest rate of 1.5%. Our debt is denominated approximately 60% euros and other currencies and 40% U.S. dollar to better match our operations. As a result, we have a high degree of financial flexibility and maintain access to significant liquidity. Our net debt to adjusted EBITDA ratio of 1.1 demonstrates our strong commitment to an investment-grade credit profile.

DXC 擁有強大而穩定的債務狀況，債務期限可控且利率低。我們幾乎所有的債務都是固定利率，實際利率為 1.5%。我們的債務以大約 60% 的歐元和其他貨幣以及 40% 的美元計價，以更好地匹配我們的運營。因此，我們擁有高度的財務靈活性，並保持獲得大量流動性的機會。我們的淨債務與調整後 EBITDA 的比率為 1.1，表明我們對投資級信用狀況的堅定承諾。

Turning to Chart 19. Let me touch on how our noncash pension income has impacted our adjusted EBIT margin. As you can see, our adjusted EBIT margin, excluding noncash pension income, has expanded from 6.6% to 6.8% in FY '23. And we are now expecting a further 95 basis point margin improvement in FY '24. We view pension income as nonoperational as it is noncash earnings. As pension income comes down, the quality of our margin improves.

轉到圖 19。讓我談談我們的非現金養老金收入如何影響我們調整後的息稅前利潤率。如您所見，我們調整後的息稅前利潤率（不包括非現金養老金收入）在 23 財年從 6.6% 擴大到 6.8%。我們現在預計 24 財年的利潤率將進一步提高 95 個基點。我們將養老金收入視為非經營性收入，因為它是非現金收入。隨著養老金收入下降，我們的保證金質量提高了。

In the fourth quarter of FY '23, as part of our efforts to improve our financial foundation, we executed on a pension plan buyout for one of our larger plans. The buyout removes the funding risk from DXC's balance sheet and should allow approximately $180 million of the surplus to fund other plans in the same country. These plans are expected to have future funding requirements.

在 23 財年第四季度，作為我們改善財務基礎的努力的一部分，我們執行了一項更大計劃的養老金計劃買斷。收購消除了 DXC 資產負債表中的資金風險，並應允許大約 1.8 億美元的盈餘為同一國家/地區的其他計劃提供資金。這些計劃預計會有未來的資金需求。

The buyout resulted in a loss of $361 million. In addition, the annual pension mark-to-market loss of $1.1 billion was primarily due to the returns on the planned assets for investments in our U.K. plans. Both of these noncash items are excluded from the company's non-GAAP results. In aggregate, our pension plans remain overfunded by $699 million.

收購導致損失 3.61 億美元。此外，每年 11 億美元的養老金按市值計價損失主要是由於投資於我們英國計劃的計劃資產的回報。這兩項非現金項目都被排除在公司的非 GAAP 業績之外。總的來說，我們的養老金計劃仍然存在 6.99 億美元的超額資金。

The team continues to make great progress on cash generation; and as a result, we have delivered 2 consecutive years of positive free cash flow over $700 million, a $1.4 billion improvement from FY '21. As you recall, our FY '23 free cash flow was negatively impacted by $70 million due to lower bank customer deposits at the German banks we divested. So excluding the impact of the lower bank customer deposits, our free cash flow would have been over $800 million.

該團隊繼續在現金生成方面取得重大進展；因此，我們連續 2 年實現了超過 7 億美元的正自由現金流，比 21 財年增加了 14 億美元。您還記得，由於我們剝離的德國銀行的銀行客戶存款減少，我們的 23 財年自由現金流受到了 7000 萬美元的負面影響。因此，排除銀行客戶存款減少的影響，我們的自由現金流量將超過 8 億美元。

As you think about our asset sales, they have generated significant deployable cash and reshaped our portfolio to be more focused on our core business and yield a positive margin impact. Over the past fiscal year, proceeds from the sale of noncore assets contributed more than $500 million of capital for deployment. As we previously discussed, we are targeting an incremental $250 million asset sales, principally data centers.

當您考慮我們的資產出售時，他們已經產生了大量可部署現金，並重塑了我們的投資組合，使其更加專注於我們的核心業務，並產生了積極的利潤率影響。在過去的財政年度，出售非核心資產的收益為部署提供了超過 5 億美元的資金。正如我們之前所討論的，我們的目標是增加 2.5 億美元的資產銷售，主要是數據中心。

Our robust capital deployment has reduced DXC shares significantly. We repurchased 46.7 million shares or approximately 18% of the outstanding stock since the beginning of FY '22. By improving our free cash flow and reducing our outstanding shares, we have significantly increased our free cash flow per share and expect to continue that trajectory in FY '24.

我們穩健的資本部署顯著減少了 DXC 的股票。自 22 財年開始以來，我們回購了 4670 萬股股票或約 18% 的已發行股票。通過改善我們的自由現金流和減少我們的流通股，我們顯著增加了每股自由現金流，並預計在 24 財年繼續保持這一趨勢。

Turning to our capital allocation. We completed our prior commitment to repurchase $1 billion of our common stock. Our Board increased our outstanding share repurchase authorization by $1 billion to $1.4 billion. We are targeting a new incremental $1 billion share repurchase. Ultimately, we expect our share repurchase to be funded by excess cash from free cash flow and asset sales. Due to the quarterly progression of cash flows and the episodic nature of asset sales, we expect temporary fluctuations in debt above our target debt level. We continue to believe DXC presents an attractive valuation. Assuming the current share price, our incremental $1 billion share repurchase would equate to about 19% of the current outstanding shares.

轉向我們的資本配置。我們完成了先前的回購 10 億美元普通股的承諾。我們的董事會將未完成的股票回購授權增加了 10 億美元，達到 14 億美元。我們的目標是新增加 10 億美元的股票回購。最終，我們預計我們的股票回購將由自由現金流和資產出售產生的多餘現金提供資金。由於現金流的季度進展和資產出售的偶發性，我們預計債務會暫時波動超過我們的目標債務水平。我們仍然相信 DXC 的估值具有吸引力。假設當前股價，我們增加的 10 億美元股票回購將相當於當前已發行股票的 19% 左右。

Our Q1 guidance is as follows. We expect Q1 organic revenue to decline minus 2% to minus 1%. We expect higher project revenues specifically in GBS and narrowing declines in ITO and Modern Workplace, ultimately improving organic revenue performance throughout FY '24. Adjusted EBIT margin of 7.5% to 8%, we expect to expand adjusted EBIT margin during the year as our margin optimization efforts take hold and offset the lower pension income that is negatively impacting our margin by 70 basis points. Non-GAAP diluted earnings per share of $0.80 to $0.85.

我們的第一季度指導如下。我們預計第一季度有機收入將下降 -2% 至 -1%。我們預計 GBS 的項目收入會更高，ITO 和 Modern Workplace 的跌幅將縮小，最終會在整個 24 財年改善有機收入表現。調整後的息稅前利潤率為 7.5% 至 8%，我們預計在年內擴大調整後的息稅前利潤率，因為我們的利潤率優化工作已經取得成效，並抵消了對我們的利潤率產生負面影響的較低養老金收入 70 個基點。非 GAAP 每股攤薄收益為 0.80 美元至 0.85 美元。

Turning to our FY '24 guidance. Organic revenue growth of negative 0.5% to positive 0.5%; adjusted EBIT margin of 8% to 8.5%, incorporating a 70 basis point pension income headwind; non-GAAP diluted earnings per share of $3.80 to $4.05. Our non-GAAP earnings per share guidance reflects a tax rate of 29% and our expectations for the timing of our new $1 billion share repurchase. Free cash flow of $900 million. Our historical pattern is that we generate strong free cash flow post Q1 throughout the remainder of the year, like we achieved in FY '22 and FY '23. Due to the timing of receipts and disbursements, we expect Q1 FY '24 free cash flow to be negative.

轉向我們的 FY '24 指南。有機收入增長從負 0.5% 到正 0.5%；調整後的息稅前利潤率為 8% 至 8.5%，其中包括 70 個基點的養老金收入逆風；非 GAAP 每股攤薄收益為 3.80 美元至 4.05 美元。我們的非 GAAP 每股收益指引反映了 29% 的稅率以及我們對新的 10 億美元股票回購時間的預期。自由現金流為 9 億美元。我們的歷史模式是，我們在第一季度後的剩餘時間裡產生了強勁的自由現金流，就像我們在 22 財年和 23 財年取得的成就一樣。由於收支的時間安排，我們預計 24 財年第一季度的自由現金流為負。

Let me touch on the announcement today. As I reflect on my 2.5 years at DXC, I appreciated the opportunity to work closely with Mike, his leadership team and the finance team. Together, we built a solid financial foundation and fixed many of the challenges at DXC. This has clearly been a team effort across DXC. While I will not be on the next phase of the journey for personal reasons, I look forward to the great things yet to come and wish Mike and the whole DXC team all the best in the future. I will be transitioning my responsibilities to Rob, who you will meet in the summer. And of course, I will be available to help make sure it is a seamless transition.

讓我談談今天的公告。回顧我在 DXC 的 2.5 年，我很高興有機會與邁克、他的領導團隊和財務團隊密切合作。我們一起建立了堅實的財務基礎，解決了 DXC 面臨的許多挑戰。這顯然是整個 DXC 團隊的努力。雖然出於個人原因我不會踏上旅程的下一階段，但我期待著未來的美好事物，並祝愿 Mike 和整個 DXC 團隊在未來一切順利。我將把我的職責轉移給 Rob，你將在夏天見到他。當然，我會隨時幫助確保無縫過渡。

With that, let me turn the call back to Mike.

有了這個，讓我把電話轉回給邁克。

Thanks, Ken, and let me leave you with the key takeaway. Due to all the work we did in FY '23, we are well positioned for success in FY '24. Our clear execution of our transformation journey by our talented team in FY '23 has delivered a better culture, stronger customer relationships, a better sales model, revenue stability, expanded margins and free cash flow, and we've maintained our investment-grade credit profile while returning $1 billion back to shareholders.

謝謝，肯，讓我把關鍵的事情留給你。由於我們在 23 財年所做的所有工作，我們已做好準備在 24 財年取得成功。我們才華橫溢的團隊在 23 財年清晰地執行了我們的轉型之旅，帶來了更好的文化、更牢固的客戶關係、更好的銷售模式、收入穩定性、擴大的利潤率和自由現金流，並且我們保持了投資級信用概況，同時向股東返還 10 億美元。

This is great execution, and I'm happy that our focus in FY '24 will not be on fixing challenges but delivering higher quality revenue, margin and EPS, expanded free cash flow and returning another $1 billion to shareholders while maintaining our investment-grade credit profile. I can tell you that my team is excited and proud because we've worked hard to get DXC to this point. And with the execution momentum we've created, along with our new operating model, we are excited and confident about delivering in FY '24.

這是一個很好的執行，我很高興我們在 24 財年的重點不是解決挑戰，而是提供更高質量的收入、利潤率和每股收益，擴大自由現金流，並在保持我們的投資級別的同時向股東再返還 10 億美元信用狀況。我可以告訴你，我的團隊很興奮也很自豪，因為我們一直在努力讓 DXC 走到這一步。憑藉我們創造的執行動力以及我們新的運營模式，我們對在 24 財年實現目標感到興奮和自信。

Now before I open the call up for questions, let me thank Ken for all of his hard work and time that he's spent with me and the team over the last 2.5 years. Together, we have built a solid financial foundation and fixed many of the challenges at DXC. I want to welcome Rob to the team. I look forward to working with him to drive DXC forward from a solid financial foundation and execute against our numbers. I'm also looking forward to a smooth transition from Ken to Rob and introducing Rob to all of you over the summer.

現在，在我開始提問之前，讓我感謝 Ken 在過去 2.5 年中與我和團隊一起度過的所有辛勤工作和時間。我們一起建立了堅實的財務基礎，解決了 DXC 面臨的許多挑戰。我想歡迎 Rob 加入團隊。我期待與他合作，推動 DXC 從堅實的財務基礎向前發展，並根據我們的數字執行。我也期待著從 Ken 順利過渡到 Rob，並在整個夏天向大家介紹 Rob。

With that, operator, please open the call up for questions.

有了這個，接線員，請打開電話詢問問題。

(Operator Instructions) Your first question comes from the line of Bryan Keane with Deutsche Bank.

（操作員說明）您的第一個問題來自德意志銀行的 Bryan Keane。

I wanted to ask about the IT services demand in the market right now. On one hand, we're hearing some weakness at other IT vendors and the macro is weighing on some demand, but on the other hand, it looks like DXC is guiding to improving organic growth. So can you just help us understand what you're seeing in the demand environment and how that might impact your guide?

我想問一下現在市場上的IT服務需求。一方面，我們聽到其他 IT 供應商的一些疲軟，宏觀正在對一些需求造成壓力，但另一方面，DXC 似乎正在引導改善有機增長。那麼，您能否幫助我們了解您在需求環境中看到的情況，以及這可能如何影響您的指南？

Bryan, thanks for that. And one of the things I said in my prepared remarks was we pushed on this hard. Obviously, we're seeing what our competitors are doing. We see some of the uncertainty, and that's why we went out and did that survey. And what that survey gave us back is that, look, the business that we have is incredibly stable. Our customers see us as essential, which basically means they can't run their business without us.

布萊恩，謝謝你。我在準備好的發言中說的其中一件事是我們努力推進。顯然，我們看到了我們的競爭對手在做什麼。我們看到了一些不確定性，這就是我們出去進行調查的原因。該調查給我們的反饋是，看，我們擁有的業務非常穩定。我們的客戶認為我們是不可或缺的，這基本上意味著沒有我們他們就無法開展業務。

And then the other key thing to that survey and those results were once we're in that position, then they want us to evolve to their technology solution. What's in the market right now is customers want cost savings, first and foremost. Second is they want projects that will give them quick value. So gone are the projects on innovation. Gone are a lot of the experiments.

然後，該調查和這些結果的另一個關鍵是，一旦我們處於那個位置，他們就會希望我們發展到他們的技術解決方案。目前市場上的客戶首先想要的是節約成本。其次，他們想要能給他們帶來快速價值的項目。創新項目就這樣消失了。很多實驗都沒有了。

So we're in a unique position because, ever since I've been here, our strategy has been to deliver on that GIS business so that we could sell the GBS business. And what essential means to us is that speaks to our GIS business, and they've got to spend money on that, all right?

所以我們處於一個獨特的位置，因為自從我來到這里以來，我們的戰略一直是交付 GIS 業務，以便我們可以出售 GBS 業務。對我們來說最重要的是與我們的 GIS 業務對話，他們必須為此花錢，好嗎？

Now what we are seeing is some softness, which Ken and I both talked about, in hardware sales, which, in all honesty, we've been very focused on with our new sales approach to be sticklers about resale revenue. So the resale revenue will come down, came down in Q4. It will come down a bit in FY '24, which, in all honesty, will help our margin over the long term.

現在我們看到的是硬件銷售方面的一些疲軟，肯和我都談到過，老實說，我們一直非常關注我們的新銷售方法，以堅持轉售收入。所以轉售收入會下降，在第四季度下降。它會在 24 財年有所下降，老實說，這將有助於我們的長期利潤率。

But 3 things I would say. First of all, yes, we see the uncertainty. The uncertainty we see is mostly in hardware sales and also some project stuff but mostly innovative projects. The positioning that we have is because we've got that ITO work and we're delivering, we're seen as essential. They're spending money on us. You can see that in, quite frankly, all 3 book-to-bills, overall book-to-bill, GBS book-to-bill and then GIS book-to-bill.

但我會說三件事。首先，是的，我們看到了不確定性。我們看到的不確定性主要是硬件銷售和一些項目，但主要是創新項目。我們的定位是因為我們已經完成了 ITO 工作並且我們正在交付，我們被視為必不可少的。他們在我們身上花錢。坦率地說，您可以在所有 3 個訂單到賬單、整體訂單到賬單、GBS 訂單到賬單和 GIS 訂單到賬單中看到這一點。

And the final point I'll make is because of that grounding in the clients, they want us to evolve, so that's where we see the project work in GBS. So hopefully, that, Bryan, gives you a flavor of what we're seeing in the market. Do you have a second question, Bryan?

我要說的最後一點是因為客戶的基礎，他們希望我們發展，所以這就是我們在 GBS 中看到項目工作的地方。因此，希望布萊恩能夠讓您了解我們在市場上看到的情況。你還有第二個問題嗎，布萊恩？

Yes. Just a follow-up for Ken, and Ken, we're sorry to see you go. Obviously, the free cash flow improvement is kind of evident with the guide. We were at $737 million this fiscal year. Maybe you could help us just bridge to that $900 million or about $900 million in free cash flow for this fiscal year you're guiding to.

是的。只是 Ken 的跟進，Ken，我們很遺憾看到你離開。顯然，自由現金流的改善在指南中是顯而易見的。本財年我們的收入為 7.37 億美元。也許你可以幫助我們在你指導的本財年實現 9 億美元或大約 9 億美元的自由現金流。

Do you want me to take it first?

要我先拿嗎？

Sure, Mike. Go ahead.

當然，邁克。前進。

Okay. So Bryan, the bridge is take $737 million and then last quarter, remember, we took out Fondsdepot. That's $70 million, right? So $737 million plus $70 million gets you to $800 million. Where we see the other $100 million coming from is us managing CapEx better, all right, us also driving our margin. So we feel pretty confident in that number.

好的。所以布萊恩，這座橋需要 7.37 億美元，然後上個季度，記住，我們拿出了 Fondsdepot。那是 7000 萬美元，對吧？所以 7.37 億美元加上 7000 萬美元可以得到 8 億美元。我們看到另外 1 億美元的來源是我們更好地管理資本支出，好吧，我們也提高了利潤率。所以我們對這個數字很有信心。

Now the other key thing that you should have taken from Ken's prepared remarks is there's a pattern. What I call it is there's a rhythm. There's a rhythm of DXC now in our margin and also within our free cash flow, where we make investments in Q1, and we pay, quite frankly, a lot of our software vendors. We pay our bonuses in Q1 and then we generate increased margin and also increased cash flow throughout the year. And now we've done that for 2 years. We've done that with the same team, and that's why we feel confident in the $900 million. Did I miss something?

現在，您應該從 Ken 準備好的發言中了解到的另一件事是有一個模式。我稱之為節奏。現在我們的保證金和自由現金流中都有 DXC 的節奏，我們在第一季度進行投資，坦率地說，我們向很多軟件供應商付款。我們在第一季度支付獎金，然後我們產生了更高的利潤率，也增加了全年的現金流量。現在我們已經這樣做了 2 年。我們與同一個團隊一起做到了這一點，這就是為什麼我們對 9 億美元充滿信心。我錯過了什麼？

Yes, just maybe real quick, Mike, just to add to it. We think Q1 is probably coming in approximately down $200 million, and we fully expect to pull that back through the rest of the year like we've done the other 2 years that Mike mentioned.

是的，也許真的很快，邁克，只是為了添加它。我們認為第一季度可能會減少大約 2 億美元，我們完全希望在今年餘下的時間裡將其拉回，就像我們在邁克提到的其他 2 年所做的那樣。

Your next question comes from the line of Keith Bachman with BMO.

您的下一個問題來自 BMO 的 Keith Bachman。

First off, Ken, I do want to say I'm disappointed to see you leaving, so wish you the best, begrudgingly, in the next part of your journey. Two things for me is, when you think about your work, this is coming up in all of our coverage universe, including with IBM last week, but just maybe comment on what you think gen AI does. If you have a person times a rate model that drives a lot of your revenue, what does gen AI do for that?

首先，Ken，我確實想說看到你離開我很失望，所以不情願地祝你在接下來的旅程中一切順利。對我來說，有兩件事是，當你考慮你的工作時，這會出現在我們所有的報導領域，包括上週與 IBM 的合作，但也許只是評論你認為 gen AI 所做的事情。如果你有一個人乘費率模型來驅動你的大量收入，那麼 gen AI 會為此做什麼？

And the second question is just wanted to help understand, if you think about the movement towards sort of flat revenues for the year, what does your booking trends need to be as we migrate through the years? We're just over 1 for this quarter. Just give us a sense about how you expect that book-to-bill to trend over the year, and that's it for me.

第二個問題只是想幫助理解，如果你考慮到今年收入趨於平穩的趨勢，隨著我們這些年的遷移，你的預訂趨勢需要怎樣？本季度我們剛剛超過 1。只需讓我們了解您對一年中預訂到賬單趨勢的預期，對我來說就是這樣。

So Keith, the first one on ChatGPT. First of all, that's an awesome piece of technology because it's finally bringing AI to the mainstream. And if you've looked back on my background, that's one of the things I brought to DXC roughly almost 4 years ago. So we're on the forefront of using AI with our ITO business, and the product that we've built is called Platform X.

Keith，ChatGPT 上的第一個。首先，這是一項了不起的技術，因為它最終將人工智能帶入了主流。如果你回顧一下我的背景，那是大約 4 年前我給 DXC 帶來的東西之一。因此，我們處於將 AI 用於我們的 ITO 業務的最前沿，我們構建的產品稱為 Platform X。

And when you think rate times hours, what Platform X does to us, I'll give you 2 use cases. Platform X monitors the IT estate, and the first use case is we use AI to predict when hardware is going to fail. A lot of our hardware providers will tell us that the hardware should be up and running for 3 years, 4 years, sometimes 7 years. And what we have is predictive analytics, and we have built those algorithms to accurately predict when something is going to tip over so we can get in front of the client, all right, and make sure that, that doesn't happen. So when you think rate times hours, we are doing project work, proactive new project work because of AI.

當你考慮費率乘以小時時，平台 X 對我們做了什麼，我會給你 2 個用例。 Platform X 監控 IT 資產，第一個用例是我們使用 AI 來預測硬件何時會出現故障。我們的許多硬件供應商會告訴我們，硬件應該運行 3 年、4 年，有時甚至 7 年。我們擁有的是預測分析，我們已經建立了這些算法來準確預測什麼時候會翻倒，這樣我們就可以在客戶面前，好吧，並確保不會發生這種情況。因此，當您認為費率乘以小時時，我們正在做項目工作，因為 AI 的積極主動的新項目工作。

Now let me give you the cost savings example. The cost savings example is we don't need as many people now because the other AI algorithm that we've written in Platform X literally takes a failure point, and we basically map that to the bots that we have. We have a library of bots that we can deploy when something goes wrong.

現在讓我舉一個節省成本的例子。成本節約的例子是我們現在不需要那麼多的人，因為我們在平台 X 中編寫的其他 AI 算法實際上是一個失敗點，我們基本上將其映射到我們擁有的機器人上。我們有一個機器人庫，我們可以在出現問題時部署它。

So when something goes wrong, AI looks at it, understands the issue. It predicts and takes the right bot. We implement the right bot and the thing gets fixed with no human intervention, which, again, that's the piece where we're driving our cost down because of it. So I would tell you 3 things on AI. The first one is we're going to continue to evolve. I love the fact that it's mainstream because a lot more people understand the fact that you have to build the algorithms first.

因此，當出現問題時，AI 會查看它，了解問題所在。它預測並採用正確的機器人。我們實施了正確的機器人，並且在沒有人為乾預的情況下解決了問題，這也是我們因此而降低成本的部分。所以我會告訴你關於 AI 的 3 件事。第一個是我們將繼續發展。我喜歡它成為主流這一事實，因為越來越多的人明白必須首先構建算法這一事實。

The second thing is we got 20,000 people that do analytics and engineering, and part of that analytics is data. And with that number of people, we have been able to create data sets that will train these algorithms.

第二件事是我們有 20,000 名從事分析和工程的人員，其中一部分分析是數據。有了這麼多人，我們已經能夠創建數據集來訓練這些算法。

And then the final thing is, look, not only are we doing it for ourselves. We're doing it for our clients. So love AI. I think it will be something that we can use to our advantage to both drive revenue and also reduce costs. Now in terms of the revenue, I think that's your second question, right, Keith, how do we stabilize the revenue, what's the book-to-bill got to be?

然後最後一件事是，看，我們不僅是在為自己做這件事。我們正在為我們的客戶做這件事。所以愛人工智能。我認為這將是我們可以利用我們的優勢來增加收入和降低成本的東西。現在就收入而言，我認為這是你的第二個問題，對吧，基思，我們如何穩定收入，訂單出貨量是多少？

Yes.

是的。

Okay. So look, I mean, we always shoot every quarter to have a book-to-bill over 1. What you saw last year, which is why the slides in our deck on revenue are so important, particularly Slide 15, is that you remember our book-to-bill last year was 0.87, 0.83. Then I believe was 1.36 last quarter and then 1.04. And what you're able to see by us is that we can keep that revenue very stable, all right? So what I would tell you is our goal absolutely is to get over 1.0. You've seen that the bookings can be lumpy. So as long as we're in and around 1.0 for the entire year, our revenue should be in good shape. Hopefully, that gives you a good flavor about that question.

好的。所以看，我的意思是，我們總是每季度拍攝一次訂單出貨比超過 1。你去年看到的，這就是為什麼我們的幻燈片中關於收入的幻燈片如此重要，特別是幻燈片 15，你還記得嗎我們去年的訂單出貨比是 0.87、0.83。然後我相信上個季度是 1.36，然後是 1.04。你能從我們這裡看到的是，我們可以保持收入非常穩定，好嗎？所以我要告訴你的是，我們的目標絕對是超過 1.0。您已經看到預訂可能是不穩定的。因此，只要我們全年都在 1.0 左右，我們的收入就應該處於良好狀態。希望這能讓你對這個問題有一個很好的了解。

Your next question comes from the line of Bryan Bergin with TD Cowen.

你的下一個問題來自 Bryan Bergin 與 TD Cowen 的合作。

Wanted to start. Can you just talk about the organic growth in fiscal '24? If we were to remove that path to revenue headwinds, so the resale headwinds you talked about, if you didn't have that year-over-year grow over, kind of what would that imply on the organic trajectory of the business?

想開始。您能談談 24 財年的有機增長嗎？如果我們要消除這條通往收入逆風的道路，那麼你談到的轉售逆風，如果你沒有同比增長，那麼這對業務的有機軌跡意味著什麼？

Look, what I'll tell you about the organic trajectory of the business is when you look at our flat revenues, we basically, let's call it over the last -- let's just call it over the last 2 quarters. So we delivered minus 3.8% last quarter. We delivered minus 2.9% in this quarter. We are now guiding to minus 1% to minus 2%.

看，關於業務的有機軌跡，我要告訴你的是，當你看一下我們持平的收入時，我們基本上，讓我們把它稱為過去——讓我們把它稱為過去 2 個季度。所以我們上個季度交付了負 3.8%。我們在本季度交付了負 2.9%。我們現在指導負 1% 至負 2%。

There's 2 things that are going to go on with our revenue. The first thing is we are going to turn positive, what I would say, towards the back end of this year. The second thing is you will see GBS become a larger and more dominant part of our revenue also in fiscal year 2024.

我們的收入將繼續發生兩件事。首先，我們將在今年年底轉為積極，我想說的是。第二件事是，在 2024 財年，您將看到 GBS 成為我們收入中更大、更占主導地位的部分。

And look, the key thing is that you can continue to see us driving the execution of this business into what we exactly said that we were going to do. We have always said that we've got 2 businesses. We said that, that GIS business is incredibly important to us because if we deliver for our customers, that will change our perception in the industry, which is what we've done. And that will allow us, all right, to finally get to revenue growth throughout -- or in FY '24.

看，關鍵是你可以繼續看到我們將這項業務的執行推向我們所說的我們要做的事情。我們一直說我們有 2 個業務。我們說過，GIS 業務對我們來說非常重要，因為如果我們為客戶提供服務，那將改變我們對行業的看法，而這正是我們所做的。好吧，這將使我們最終在整個 - 或 24 財年實現收入增長。

And maybe, Mike, just to add to that, the decline in resale this quarter was about 170 basis points of organic revenue growth, so the business performed on a services level much better.

也許，邁克，補充一下，本季度轉售的下降大約是有機收入增長的 170 個基點，因此業務在服務水平上的表現要好得多。

So when we think about the resale, all right, one of the things we've done with our operating committee is really hone in on resale revenue because we make very little margin on it. I understand our clients need it. I understand that our clients want a one-stop shop to implementing ITO and cloud. But look, this is part of our more disciplined approach to dealmaking.

因此，當我們考慮轉售時，好吧，我們與運營委員會所做的其中一件事就是真正磨練轉售收入，因為我們從中賺取的利潤很少。我知道我們的客戶需要它。我了解我們的客戶想要一站式商店來實施 ITO 和雲。但是看，這是我們更有紀律的交易方法的一部分。

And I just want to come back to what we said around infrastructure light because that will be important because when we think about not using our balance sheet, when we think about not taking data centers, when we think about removing contractors for employees, all that stuff is goodness as it relates to our margin and then better revenue that will generate margin.

我只想回到我們所說的關於輕型基礎設施的話題，因為這很重要，因為當我們考慮不使用我們的資產負債表時，當我們考慮不使用數據中心時，當我們考慮為員工移除承包商時，所有這些東西是好的，因為它關係到我們的利潤，然後是更好的收入，這將產生利潤。

So look, we tackle something pretty much each year. This will be the thing that we tackle this year. And I think it -- when we talk about having a better quality revenue for you all, that's what we're saying. Bryan, did you have another question?

所以看，我們幾乎每年都會處理一些事情。這將是我們今年要解決的問題。我認為——當我們談論為你們所有人帶來更高質量的收入時，這就是我們所說的。布萊恩，你還有其他問題嗎？

Yes. Just one follow-up on the outlook on '24 growth guidance. Can you give us any other color on the underlying stack performance assumptions there that are embedded within that overall headline growth range?

是的。只是對 24 年增長指導展望的一項後續行動。您能否為我們提供有關整體標題增長范圍內的基礎堆棧性能假設的任何其他顏色？

Yes. What I will tell you is GBS will be -- will grow more than it did in FY '23, so that means a combination of analytics, insurance and apps. And GIS will shrink more than it did in FY '23, all right? And what you've seen when you go look at Page 14 of our deck, the security is -- that's a business that is pretty stable for us. I mean we do security based on the ITO stuff.

是的。我要告訴你的是，GBS 將會——將比 23 財年增長更多，這意味著分析、保險和應用程序的結合。 GIS 將比 23 財年收縮得更多，好嗎？當您查看我們平台的第 14 頁時，您所看到的是，安全性是——這對我們來說是非常穩定的業務。我的意思是我們根據 ITO 的東西來做安全。

What you will see with our focus on ITO is we will drive that well below the FY '23 totals. And then I've been saying now for probably 4 quarters that we're finally going to fix Modern Workplace. And you saw that turn this quarter from minus 15.3% to now minus 5.3%, and I expect that to get flat next quarter. So more GBS, less GIS and that basically will be our mix for FY '24. So Bryan, hopefully that helps out.

通過我們對 ITO 的關注，您會看到我們將推動這一目標遠低於 23 財年的總數。然後我已經說了大概 4 個季度，我們終於要修復 Modern Workplace。你看到這個季度從負 15.3% 到現在的負 5.3%，我預計下個季度會持平。所以更多的 GBS，更少的 GIS，這基本上將是我們 24 財年的組合。所以布萊恩，希望這能有所幫助。

But the GIS will shrink at a lower rate, Mike, is that correct?

但是 GIS 會以較低的速度收縮，邁克，對嗎？

Yes.

是的。

Your next question comes from the line of Ashwin Shirvaikar with Citi.

你的下一個問題來自花旗的 Ashwin Shirvaikar。

Ken, sorry to see you go. Hope all's well on your end. I guess let me start with macro concerns abound, and there's a fixed number of things that enterprise spenders do when those concerns come up. When you apply sort of the normal approach that's taken, how would you kind of get one level below? And within GBS, for example, talk about the impact that you might expect to see on analytics Versus applications versus insurance and the same thing for GIS. How are you kind of risk mitigating the outlook that you're providing?

肯，很遺憾看到你離開。希望你這邊一切順利。我想讓我從宏觀問題開始，當這些問題出現時，企業支出者會做一些固定的事情。當您應用某種已採用的正常方法時，您將如何獲得低於一級的水平？例如，在 GBS 中，討論您可能期望看到的對分析、應用程序、保險以及 GIS 的影響。您如何降低您提供的前景的風險？

Well, look, I mean, Ashwin, the way -- I'll start with GIS, right? I mean, the first thing is you look at how stable the revenue is, and it's not like the macroeconomic stuff just started today, all right? So you look how stable that revenue has been just in the last 2 quarters, and we're looking at more stability as we enter FY '24, all right? That, along with people are going to continue to spend money on the ITO and the cloud space mostly because they want to protect themselves from any sort of security issues that could cripple the environment.

好吧，我的意思是，Ashwin，我會從 GIS 開始，對吧？我的意思是，首先要看收入的穩定性，這不像今天才開始的宏觀經濟，好嗎？所以你看看過去兩個季度的收入有多穩定，我們正在尋找更多的穩定性，因為我們進入 24 財年，好嗎？這與人們將繼續在 ITO 和雲空間上花錢主要是因為他們想保護自己免受任何可能破壞環境的安全問題的影響。

The second thing, as you know, the other major offering we have in GIS is Modern Workplace. And as much as we would all hope that everybody might come into the office, that's still not true, all right? So being able to have a workforce that you can support virtually is key. So we have 2 key offerings there that what I keep talking about is they are essential to our customers' needs and we are continuing to see demand.

第二件事，如您所知，我們在 GIS 中提供的另一個主要產品是現代工作場所。儘管我們都希望每個人都能進入辦公室，但這仍然不是真的，好嗎？因此，能夠擁有一支您可以虛擬支持的勞動力是關鍵。所以我們在那裡有 2 個關鍵產品，我一直在談論的是它們對我們客戶的需求至關重要，我們將繼續看到需求。

Now in that demand, they want cost savings, all right? And in that demand, there are competitive deals from our competitors because they are not delivering for their customers coming to the market for us to look at. So we need to be very choosy because what we are not going to do is take the progress that we've made in GIS backwards.

現在在這種需求下，他們想要節省成本，好嗎？在這種需求中，我們的競爭對手提供了具有競爭力的交易，因為他們沒有為進入市場供我們查看的客戶提供服務。所以我們需要非常挑剔，因為我們不會做的是讓我們在 GIS 方面取得的進步倒退。

Now on GBS, it's very simple. The apps and the A&E business, we sell based on value. You sell based on value based on relationship sales. So part of this operating model change is taking 7 of our most senior leaders and sticking them to the forefront of doing relationship selling and coaching our people and managing the details, all right? And when we do that, right, we have seen a built-in pipeline for our work in GBS, all right?

現在在 GBS 上，它非常簡單。應用程序和 A&E 業務，我們根據價值進行銷售。您根據基於關係銷售的價值進行銷售。因此，這種運營模式變革的一部分是讓我們的 7 位最高級領導者站在最前沿，負責銷售關係、指導我們的員工和管理細節，好嗎？當我們這樣做時，對吧，我們已經看到了我們在 GBS 中工作的內置管道，好嗎？

And then insurance stands on its own. I think Ray has got a great business there. It's a business where the industry needs our software. We do a good job running the software, and we definitely provide value to that industry in cost savings. So look, that's why we're pretty bullish about calling what we've called in FY '24, and we're not coming off that. And like I said, if I see anything, any shortcomings in the revenue, Ashwin, it will be resale and it will be maybe the project work. Okay?

然後保險獨立存在。我認為雷在那裡的生意很好。這是一個行業需要我們的軟件的行業。我們在運行軟件方面做得很好，而且我們肯定會在成本節約方面為該行業提供價值。所以看，這就是為什麼我們非常看好我們在 24 財年的電話會議，而且我們並沒有放棄。就像我說的，如果我看到任何東西，收入方面的任何不足，阿什溫，它會被轉售，而且可能是項目工作。好的？

Now the last thing I will leave you on the project work is remember what we did a year ago. What we did a year ago is we took on the Russian issue straight away. Okay? And we got ourselves out of Russia. So that A&E capability is unique in the industry because we don't deliver any of that work with Russian resources. So therefore, that makes that revenue more stable, and that also gives us a unique sales position in the marketplace in terms of our delivery capability. So now that's how I would give you some more details, Ashwin, on our business.

現在我要留給你們的關於項目工作的最後一件事就是記住我們一年前所做的事情。我們一年前所做的是直接處理俄羅斯問題。好的？我們讓自己離開了俄羅斯。因此，A&E 能力在業內是獨一無二的，因為我們不使用俄羅斯資源提供任何此類工作。因此，這使收入更加穩定，並且就我們的交付能力而言，這也使我們在市場上處於獨特的銷售地位。所以，現在我將如何向您提供更多有關我們業務的詳細信息，Ashwin。

Right. Right. No, definitely appreciate the steady performance. Ken, I can't let you go without one more free cash flow question. The bridge to fiscal '24 from what you have here, what are the main elements of that bridge if you could kind of drill down into that?

正確的。正確的。不，絕對欣賞穩定的表現。肯，如果沒有再問一個自由現金流問題，我不能讓你走。從你這裡的內容到 24 財年的橋樑，如果你可以深入研究，那座橋樑的主要元素是什麼？

Yes, Ashwin, thanks. And just touch on what Mike said earlier, right? We produced $737 million this year. Add back the lower bank customer deposits, like as we fortunately no longer own banks, so we won't have that headwind next year, which I would still characterize as nonoperational. So that puts us at $800 million this year. Our margin we're guiding to is 8% to 8.5%, and it includes 70 basis less pension income. And I think we all know by now pension income is noncash. So right there off the bat, the margin improvement that we're targeting with the lower pension income will certainly drive more cash flow.

是的，阿什溫，謝謝。只需談談 Mike 之前所說的話，對嗎？我們今年的收入為 7.37 億美元。再加上較低的銀行客戶存款，就像我們幸運的是不再擁有銀行一樣，所以明年我們不會遇到這種逆風，我仍將其描述為非經營性。因此，這使我們今年達到 8 億美元。我們指導的利潤率為 8% 至 8.5%，其中包括減去 70 個基點的養老金收入。我想我們現在都知道養老金收入是非現金收入。因此，馬上，我們以較低的養老金收入為目標的利潤率改善肯定會推動更多的現金流。

And then just we talk about working capital. It's been a user of cash. I think when I first got here, we had about negative 13% working capital. We're now down to negative 3% of revenue on working capital. So we don't feel like we need to keep paying down the working capital to make the business kind of more normal from a payable standpoint.

然後我們只談論營運資金。它一直是現金的用戶。我想當我剛到這裡時，我們的營運資金約為負 13%。我們現在的營運資金收入下降到負 3%。因此，從應付的角度來看，我們覺得我們不需要繼續支付營運資金以使業務更加正常。

And that's kind of closer to the peer group. So we don't think working capital be a consumer going forward. And then the CapEx, as Mike talked about earlier, I think we feel pretty good that we've been working through each and every deal, and we'll come out on the other side with a better CapEx profile. A good proof point is this year's 70 basis point decline in CapEx and capital leases as a percent of revenue.

這更接近於同齡人群體。因此，我們認為營運資金不會成為未來的消費者。然後是資本支出，正如邁克之前談到的那樣，我認為我們一直在努力完成每一筆交易，我們感覺非常好，我們將在另一邊以更好的資本支出狀況出現。一個很好的證據是今年資本支出和資本租賃佔收入的百分比下降了 70 個基點。

Got it. Understood, understood. And thank you for pointing out that the $1 billion buyback is 19% of your share base.

知道了。明白了，明白了。感謝您指出 10 億美元的回購佔您股票基礎的 19%。

Your next question comes from the line of Rod Bourgeois with DeepDive.

您的下一個問題來自 Rod Bourgeois 與 DeepDive 的合作。

Ken, you'll definitely be missed, and thanks for all the progress you've contributed on cleaner financials and moving to a more capital-light model, just as a couple of examples there. And welcome, Rob, to the CFO role.

肯，我們肯定會想念你，感謝你在更清潔的財務和轉向更輕資本的模式方面所取得的所有進步，就像那裡的幾個例子一樣。歡迎羅布擔任首席財務官一職。

Guys, I want to ask about the competitive intensity topic. Are you seeing an ability to win competitive deals without using your balance sheet or sacrificing on profitability terms? I guess, in particular, are you experiencing a change in the ITO market that's enabling the infrastructure-light model to come to fruition?

伙計們，我想問一下關於競爭強度的話題。您是否看到了在不使用資產負債表或犧牲盈利條件的情況下贏得競爭性交易的能力？我想，特別是，您是否正在經歷 ITO 市場的變化，使輕基礎設施模型得以實現？

100%. I don't know how to answer that any other way, meaning we see demand in that market, all right, because of the fact that we've delivered for our customers. I keep talking about us being a safe pair of hands. It is, definitely, we have customers coming to us with our competitors' work. Okay? So that's first and foremost.

100%。我不知道如何以其他方式回答這個問題，這意味著我們看到了那個市場的需求，好吧，因為我們已經為客戶交付了。我一直在談論我們是一雙安全的手。毫無疑問，我們有客戶帶著我們競爭對手的作品來找我們。好的？所以這是首要的。

I've told you guys that we have been very choosy about that work. And what we're not going to do is be a bank, so take extended payment terms because that's the way this market has been. We also are not going to fund a lot of the transitions or increases in energy and so forth. So we will sit on the terms, Rob, to get us to the deals that we want and actually the terms that we want so that we don't go backwards. Okay? And that's really important to me because all the progress we've made in this revenue, it's still got to be revenue that we can generate good margins.

我已經告訴過你們，我們對這項工作非常挑剔。我們不會做的是成為一家銀行，所以採取延長付款條件，因為這就是這個市場的方式。我們也不會資助很多轉型或能源增加等。所以我們將遵守條款，Rob，讓我們達成我們想要的交易，實際上是我們想要的條款，這樣我們就不會倒退。好的？這對我來說真的很重要，因為我們在這個收入方面取得的所有進展，它仍然必須是我們可以產生良好利潤的收入。

The last thing I will tell you is we've also seen progress on us not only getting better terms but also getting better prices because, again, at the end of the day, that ITO market is about keeping those estates up and running, making sure they don't get penetrated. And the final thing is it's just not a headache that CEOs want to have. Okay?

我要告訴你的最後一件事是，我們也看到了我們取得的進展，不僅獲得了更好的條件，而且獲得了更好的價格，因為歸根結底，ITO 市場是為了保持這些產業的正常運轉，使確保它們不會被穿透。最後一點是，這並不是 CEO 們想要的頭痛問題。好的？

So us being that trusted partner, was happy to see how we moved in the Gartner Quadrant, right? I mean that's totally a third-party viewpoint of the world, and I like the position that we have in the market right now. And what we're going to continue to do is be choosy about the work, but we're also going to sell on top of those trusted relationships the GBS work. Rod, is there another question you have?

所以我們作為值得信賴的合作夥伴，很高興看到我們在 Gartner 象限中的進展，對吧？我的意思是這完全是第三方對世界的看法，我喜歡我們現在在市場上的地位。我們將繼續做的是對工作有所選擇，但我們也將在 GBS 工作的那些可信賴的關係之上進行銷售。羅德，你還有其他問題嗎？

Yes. The follow-up is just about the new operating model. Can you give us a little more background on what prompted you to move to the new model? And what's the main difference in the new model versus the prior one? And is that new model mostly in GBS? Or does it also flow into GIS as well? So just some more color on the background there.

是的。後續只是關於新的運營模式。您能否為我們提供更多關於促使您轉向新模型的背景信息？新模型與先前模型的主要區別是什麼？那個新模型主要是在 GBS 中嗎？還是它也流入 GIS？所以只是在背景上多了一些顏色。

Thanks, Rod. The -- so first of all, the operating model goes across the entire company. And when I came in here, the business ran by region, right? So we talk about what Ken and I have done on the financials to make them more transparent, to also get them to a better spot and so forth. But when you're running financials, all right, in the business by region, there's no differentiation. There's no good analysis on what's happening, right, with each offering. And there's really not a person that's driving that from revenue through margin through collections and basically operating these businesses like their own.

謝謝，羅德。 - 首先，運營模式貫穿整個公司。當我來到這裡時，業務是按地區劃分的，對吧？因此，我們討論了 Ken 和我在財務方面所做的工作，使它們更加透明，也使它們達到更好的位置等等。但是當你經營財務時，好吧，在按地區劃分的業務中，沒有區別。對於每個產品正在發生的事情，沒有很好的分析。並且真的沒有人通過收款通過利潤來推動收入，並且基本上像他們自己一樣經營這些業務。

So what the new operating model does is it's something I'm used to from my past. If you go look at the major service providers that are out there, typically, they are driven by an offering. Why? Because you can get the differentiation. What I like about it is we've literally chosen our top leaders, and we put them into the market to focus on growth differentiation. But the other thing is I keep talking about the culture. And in this business, you have to manage the details, which means you got to get to the account level and you've got to drive the account.

所以新的運營模式所做的是我過去習慣的事情。如果你去看看那裡的主要服務提供商，通常情況下，它們是由產品驅動的。為什麼？因為你可以獲得差異化。我喜歡的是我們從字面上選擇了我們的最高領導者，我們將他們投入市場以專注於增長差異化。但另一件事是我一直在談論文化。在這項業務中，你必須管理細節，這意味著你必須達到賬戶級別，你必須推動賬戶。

And it starts with the relationship with the customer. Then, it gets into the actual value that we provide because a lot of our book-to-bill right now, Rod, is based on the value that those customers see in what we're providing. It's not just delivery anymore, but they're literally seeing the cost savings and they're seeing the new ideas brought to the table where we can help them meet their financial performance.

它始於與客戶的關係。然後，它進入我們提供的實際價值，因為我們現在的很多訂單到賬單，Rod，都是基於這些客戶在我們提供的產品中看到的價值。不再只是交付，他們確實看到了成本節約，他們看到了新想法被帶到桌面上，我們可以幫助他們實現財務績效。

So that's what the new offering model does. I'm really excited about it. I will tell you that we've been planning for this for an entire year. And Ken's done a lot of good work. Rob will definitely take it to the next step with his IBM background, all right? Because when you look at people like IBM and Accenture, they're used to running that model and driving the business, all right, for increased revenue and then margin expansion, EPS expansion and free cash flow. So that's why we're doing it. Like I said, I'm excited about it, and I think everybody will see the fruits of it very shortly.

這就是新產品模型的作用。我真的很興奮。我會告訴你，我們為此計劃了整整一年。肯做了很多出色的工作。 Rob 肯定會以他的 IBM 背景將其帶入下一步，好嗎？因為當你看像 IBM 和埃森哲這樣的人時，他們習慣於運行該模型並推動業務，好吧，為了增加收入，然後擴大利潤率，擴大 EPS 和自由現金流。這就是我們這樣做的原因。就像我說的，我對此很興奮，我想每個人很快就會看到它的成果。

Your next question comes from the line of Lisa Ellis with MoffettNathanson.

你的下一個問題來自 Lisa Ellis 和 MoffettNathanson 的對話。

Ken, you will be missed terribly. Mike, I know you opted not to give any sort of new longer-term guidance, which makes sense, I think, at this point. But can you give us a sense for, as you're reflecting sort of starting into a new fiscal year, how you would articulate your sort of medium-term goals for DXC at this point?

肯，你會非常想念的。邁克，我知道你選擇不提供任何新的長期指導，我認為在這一點上是有道理的。但是，當您開始進入新的財政年度時，您能否告訴我們，此時您將如何闡明您對 DXC 的中期目標？

So what I would do is the first thing I would say is go back to that inflection point. So the great news is that we've got a leadership team here that can execute. We have shown everybody that we can recruit really good talent. And now this game is going to be about -- all about execution. And what I would tell you plain and simple is I see a company that will grow revenue and like I said, expand margin, EPS and free cash flow. Those are our goals, all right? Those align to what we're trying to do and what we will implement in FY '24. And I think having those goals will propel us to be a company that will be a very stable company that can compete well in the IT services market for years to come. Lisa, do you have a second question?

所以我要做的是我要說的第一件事就是回到那個拐點。所以好消息是我們這裡有一個可以執行的領導團隊。我們已經向所有人展示了我們可以招募到真正優秀的人才。現在這場比賽將是關於——所有關於執行。我想簡單明了地告訴你的是，我看到一家公司將增加收入，就像我說的那樣，擴大利潤率、每股收益和自由現金流。這些是我們的目標，好嗎？這些與我們正在嘗試做的事情以及我們將在 24 財年實施的事情相一致。我認為擁有這些目標將推動我們成為一家非常穩定的公司，能夠在未來幾年在 IT 服務市場上保持良好的競爭力。麗莎，你還有第二個問題嗎？

Yes, sure, just maybe related to that. I know you called out in the prepared remarks about $250 million in additional asset sales. You've done a lot of portfolio reshaping very effectively over the last few years. Is that sort of done at this point? Or are there additional things we should be anticipating potentially, either additional divestitures or you did on the investment side?

是的，當然，可能與此有關。我知道你在準備好的評論中提到了大約 2.5 億美元的額外資產出售。在過去的幾年裡，你非常有效地進行了大量的投資組合重塑。在這一點上完成了嗎？或者還有其他我們應該預期的潛在事情，無論是額外的資產剝離還是您在投資方面所做的？

Thanks, Lisa. Our focus right now will be on that second piece I talked about infrastructure light, which is shedding our data centers. Okay? So that's a fixed cost that when you're going through the transformation that we're going through, you got to be able to shed those. And I'm used to running what I call infrastructure light at the old place, and basically, you don't own data centers. And what we're looking to do is that $250 million is focused on data centers and some facilities. So we plan on delivering that in FY '24, and I think we've got a very good handle and beat on delivering that $250 million.

謝謝，麗莎。我們現在的重點將放在我談到的關於基礎設施光的第二個部分，它正在擺脫我們的數據中心。好的？所以這是一個固定成本，當你經歷我們正在經歷的轉型時，你必須能夠擺脫這些。我習慣於在老地方運行我稱之為輕型基礎設施的東西，基本上，你不擁有數據中心。我們希望做的是將 2.5 億美元專注於數據中心和一些設施。因此，我們計劃在 24 財年實現這一目標，我認為我們在交付 2.5 億美元方面有很好的把握和領先優勢。

Your next question comes from Jason Kupferberg with Bank of America.

你的下一個問題來自美國銀行的 Jason Kupferberg。

I actually wanted to pick up on the infrastructure-light topic and maybe if you can just talk a little bit about what is new, different here? I mean I feel like we've talked about this for a while, a desire to use the balance sheet less and outsourcing deals. I mean I get you're going to sell some data centers. But just in terms of go to market, deal terms and deal structure, like what -- I guess, what's really changing? Because I feel like infrastructure light has been a topic really since you got there, Mike.

我實際上想談談輕基礎設施的話題，也許你能談談這裡有什麼新的、不同的嗎？我的意思是我覺得我們已經討論了一段時間，希望減少使用資產負債表和外包交易。我的意思是我知道你要賣掉一些數據中心。但就進入市場、交易條款和交易結構而言，比如——我想，真正發生了什麼變化？因為我覺得自從你到達那里以來，基礎設施之光就一直是一個話題，邁克。

Okay. So Jason, the first thing that changed is the competitive landscape. So when I got here, all right, we were not in the position we are today. And Jason, you cover the industry. You know what our competition is doing. You know the people that you put us up against, and I would tell you, we're on the top of that heap right now, all right? So that's the first thing that's changed.

好的。所以傑森，首先改變的是競爭格局。所以當我來到這裡時，好吧，我們不是今天的處境。傑森，你負責這個行業。你知道我們的競爭對手在做什麼。你知道你讓我們反對的人，我會告訴你，我們現在在那個堆的頂端，好嗎？所以這是第一個改變的地方。

Now based on us being in that position, that front position, we can now, all right, ask for different terms. And we can also start shaping our business because of that, all right? So this isn't just something we've been talking to. We've been preparing for this for quite some time. Many people said that we ought to get rid of that business, and strategically, I thought that was the wrong thing to do. And now it's proving out to being the right thing to do because we're able to shape that business and grow off the back of those customer relationships.

現在基於我們處於那個位置，那個前面的位置，我們現在可以，好吧，要求不同的條款。我們也可以因此開始塑造我們的業務，好嗎？所以這不僅僅是我們一直在談論的事情。我們為此準備了很長一段時間。許多人說我們應該擺脫那項業務，從戰略上講，我認為這是錯誤的做法。現在事實證明這是正確的做法，因為我們能夠塑造該業務並在這些客戶關係的支持下發展壯大。

So the main things I would tell you to focus on is our balance sheet is a lot cleaner than it's ever been. That's point one, so we're implementing that appropriately. You'll see throughout the year how we implement the folks on data centers. And then the last thing is the contractors. So a lot of our competition and in fact, DXC, when I got here, was very, very heavy on contractors, and flipping those contractors to employees allows us to generate more margin. Remember, each contractor, we're probably paying a 7% to 10% premium on. And having that focus will definitely clean up our margin.

所以我要告訴你要關注的主要事情是我們的資產負債表比以往任何時候都乾淨得多。這是第一點，所以我們正在適當地實施它。全年您都會看到我們如何在數據中心實施人員。最後一件事是承包商。所以我們的很多競爭，事實上，當我來到這裡時，DXC 對承包商非常非常重視，將這些承包商轉給員工可以讓我們產生更多的利潤。請記住，每個承包商，我們可能要支付 7% 到 10% 的溢價。專注於此肯定會清理我們的利潤。

So look, with that, Jason, I appreciate the question. Look, in closing, I want to thank Ken for all of his efforts. I want to welcome Rob. He will be a great addition to the team. I think we've been executing incredibly well. We've definitely got the right team, and I am definitely looking forward to delivering in FY '24, basically, higher-quality revenue, margin, EPS, and the key thing will be expanding our free cash flow. And while we're doing that, we expect to maintain our investment-grade profile and deliver another $1 billion back to our shareholders.

所以看，Jason，我很欣賞這個問題。最後，我要感謝 Ken 所做的所有努力。我要歡迎羅伯。他將成為球隊的重要補充。我認為我們一直執行得非常好。我們絕對擁有合適的團隊，我絕對期待在 24 財年實現更高質量的收入、利潤率、每股收益，關鍵是擴大我們的自由現金流。在我們這樣做的同時，我們希望保持我們的投資級形象，並向我們的股東再返還 10 億美元。

And with that, operator, please close the call.

就這樣，接線員，請關閉通話。

This concludes today's conference. Thank you for attending. You may now disconnect.

今天的會議到此結束。感謝您的出席。您現在可以斷開連接。